Course Objectives for Chapter 11: Technology, Production, and Costs

 

Students should be able to:

      Define technology and give examples of technological change.

      Distinguish between the economic short run and the economic long run.

      Understand the relationship between the marginal product of labor and the average product of labor.

      Explain and illustrate the relationship between marginal cost and average total cost.

      Graph average total cost, average variable cost, average fixed costs, and marginal cost.

      Explain how firms use the long-run average cost curve to plan.